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Investing.com -- Shares in Kenvue soared over 22% in premarket trading Monday after the U.S. consumer health company reported better-than-expected earnings for the third quarter and announced it has reached a deal to be acquired by Kimberly-Clark for $48.7 billion.
Kenvue posted third-quarter earnings of $0.28 per share, topping analyst expectations of $0.26. Quarterly revenue totaled $3.76 billion, slightly below the consensus forecast of $3.83 billion.
Net sales fell 3.5% from a year earlier, driven by a 4.4% drop in organic sales, partly offset by a 1% positive impact from foreign exchange, Kenvue said.
The company’s adjusted gross profit margin improved to 61.2% from 60.7% a year ago, while adjusted operating margin edged down to 21.5% from 22.1%.
“Throughout the third quarter, our team remained focused on our four operating priorities to drive improved performance,” said Kirk Perry, CEO of Kenvue. “Third quarter results keep us on track to deliver our full year guidance and we are confident in the decisive actions we are taking to accelerate Kenvue’s performance and unlock the inherent value of our brands.”
Kenvue reaffirmed its full-year 2025 outlook, projecting earnings per share between $1.00 and $1.05, in line with market expectations of $1.03.
It continues to expect net and organic sales to decline by a low-single-digit percentage, assuming minimal currency effects, and sees adjusted operating margins trending lower year-over-year.
In a separate announcement, Kenvue said it has entered into a definitive merger agreement under which Kimberly-Clark will acquire all outstanding shares of Kenvue common stock in a $48.7 billion cash-and-stock transaction.